Introduction of exit capital tax in Ukraine now unacceptable

KIEV: The introduction of the exit capital tax in Ukraine to replace the profit tax today is unacceptable due to a risk of losing tax revenue, Lead Economist and Program Leader covering Belarus, Moldova and Ukraine Faruk Khan said at a press conference in Kyiv on Tuesday.

Most of countries tax corporate profit and only few have switched to taxation of distributed profit, he said. Most of these countries have lost a large share of revenue from taxation of profit during this switch and this loss is inadmissible for Ukraine now, he said.

Khan paid attention to the fact that in the near future Ukraine would need large volumes of financing for servicing foreign liabilities and cover fiscal needs.